Uber Cuts Prices in Canada

Published: January 11, 2016

Updated: July 24, 2018

Author: Luke Jones

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Uber may have enjoyed meteoric growth in Canada over the last 12 months, but even the all-conquering ride-sharing UberX service has slow times. January is quiet for all peer 2 peer driving services such as taxis and Uber is not immune as consumers stay in more often as winter weather grips Canada. Uber has responded by slashing prices, a sort of winter sale, in Canada and the United States.

The company realizes this slower time of year and says it will cut prices across 100 cities in the United States and Canada, mirroring a tactic the company used in both 2014 and 2015.

"Five and a half years in, we've learned that the single most effective way to boost demand during the winter slump is to cut prices for riders," Uber said in a new press release. The company says it wants consumers to "head out of the house, ditch their keys, and avoid parking."

Just how much customers will save depends on their region, with some cities getting a 10 per cent cut and others getting as much as 20 per cent in savings. The nature of Uber’s service should mean that customers paying less results in drivers earning less, but Uber assures that this will not be the case, adding:

"We are guaranteeing earnings for drivers to ensure that no one is disadvantaged. That's 24/7 incentives to put drivers at ease," the company says in the release.

Uber has recently been in a sticky situation with its customers regarding prices of late as the company spiked its prices considerably during the New Year’s Eve period. That disgruntled plenty, and perhaps this new price cut is a move by the company to make amends with those consumers. Uber has not said how long the new prices will last, but customers should expect a return to normal rates at the end of January.

UberX has become hugely popular in Canada amongst workers and customers. Nearly 20,000 people drive for the company in Toronto alone, but no city in the country currently regulates the service, meaning drivers are effectively operating illegally. Doors are opening however as Toronto has voted to regulate the UberX service, starting this year, while Aviva Canada announced last week that it is developing an auto insurance policy that focuses on ride sharing services.